Incentives Myths

Incentives Myths

Mar 25, 2014 by Dennis McAndrew

"We only use Ohio-ground coffee in our company kitchen; do we qualify for financial incentives?"

"We named our new puppy 'Buckeye' – do we qualify for Ohio incentives?"

"My mother-in-law knows the governor – so we should be all set with incentives, right?"

People think the darnedest things about financial or tax incentives. We of course made up the quotes above – oh, but wait – one of them is an actual question that someone asked us! Can you guess which one is real?

A few other quotes we've heard:

"We received an incentive offer letter...we'd like to get the money now."

Well, sorry. That letter is simply the state or local government's way of saying that as long as you complete all the applications, submit all the required documentation, attend such and such approval meetings, invest X much money, create X many jobs paying X average wage, and maybe some other things, then we will give you this assistance. This letter is often secured early in the incentives process, and for some reason, companies often make the mistake of thinking the letter signifies that their incentives are locked in, when in fact the work is just beginning.

"We recently finished expanding our building – I think we qualify for an incentive."

Hmmm – how can we put this delicately – you might want to look up the definition of "incentive."

"Our state Representative has been to our facility, so if there was an incentive opportunity,

we'd know about it."

You give those folks WAY too much credit.

"We heard X company got incentives – we want some too."

When it comes to criteria for incentives, no two companies are alike, even if they're in the same industry or on the same block.

"We just built some new offices – we get the same incentives as when we built the building, right?"

Again, the meaning of "incentive" is something that motivates or induces one to act – you've already acted. But even if you had engaged Silverlode before building your new offices, incentives would depend on a wide range of factors that may or may not have qualified your company.

Lastly, companies often think their attorney, accountant, banker or real estate broker can handle incentives. The incentive landscape is complex and constantly changing, which is why the shrewdest company managers, attorneys, CPAs, bankers and brokers include us on their teams.

Silverlode understands incentive structures and tools and we know the regions, their motivations and their key decision makers. We will identify and quantify appropriate opportunities, and ensure you or your client receive the full value of incentives and credits.

Answer to which of the first three quotes was real: the 'mother-in-law' quote!

Believe it.